Insurance for University Students
A recent report by
Nationwide building society found that parents
were not properly insuring their child's contents (now they are back at
University) under their
homeowner insurance policy for contents away
from the home. These days students tend to have more a new personal possessions
such as ipod's, TV's bikes and computers. The report urged parents to check
whether or not their buildings insurance policy had the provision for contents
insurance away from the home as well as for accidental damage. According to
Nationwide the average value of possessions students have taken with them to
their university shared housing or halls of residence is £1,500.
Parents are increasingly
becoming more and more responsible for the financial undertakings of their
child's university education. The erosion of grants, the increase in personal
student debt through student loans is putting more pressure on parents...
Insurance for university times is sometimes forgotten when the focus of the
finance is on supporting the rental costs and everyday living of being a
university student. Most students when living away from home for the first time
may not be aware that they require
contents insurance in a shared house rented out
from a landlord. Typically the landlords own buy to let insurance policy would
only cover for rebuilding of the building and furnished items provided to the
students.. they would expect the student ot bear the cost of their own contents
insurance policy.
If students continue to
live in private shared housing and leave personal possessions in a property
during the summer holiday break there is an increased risk of burglary and
theft. Direct line Home Insurance published advice recently urging students not
to leave their bicycles on university campus during the break and to ensure that
they are properly insured before they even go to university. Simple precautions
could help to reduce the amount of bikes stolen, such as locking them up in a
busy area of the university and making sure the lock goes through the wheel and
the frame of the bike. Despite the fact most UK insurance policies do not cover
the risk of the theft of bikes, every day over 100 bikes stolen in the UK, at an
average cost of 160 pounds.
Probably the easiest and
cheapest is to check the policy wording of your own homeowner insurance. It is
unbelievable the number of homeowners that actually pay for specialist cover
without realising that there was an option under there own home insurance.
You may finds that the policy already has a section that will cover your
children’s possessions whilst away at university. If not, many insurers will
allow you to insure the items as an extension of the All Risks section of the
policy. All Risks cover is designed to cover items away from the home and can be
used to cover almost all items. Make a list of the items to be covered and give
your insurer a call and ask for a price. A couple of things to watch out for:-
1. Don’t just assume
that because you have seem students effects cover mentioned in your policy
that it will automatically be included, always phone your insurer or broker to
check. Ask for written confirmation.
2. When you receive confirmation of cover, check to see if there are any
special security clauses on the policy wording, this is especially important
for valuable items like laptop computers.
3. Check on the size of the policy excess. ( The excess is the first portion
of the loss that you will have to pay in the event of a claim)
If you have a homeowners
policy that cannot be extended to cover students effects then of course you can
buy specialist cover, There are a number of policies available on the market and
the cover can include; Computers, laptops, books, ipods,TV , clothing, musical
instruments and even pedal cycles. Although these policies will probably be more
extensive, you will find that the range of covers and options on offer is wider.
Most polices for this type of cover allow you to pick a sum insured, say £2000
then include higher risk items such as lap top computers. It is usual to be able
to leave things at the residence during the summer holidays and cover to still
apply. As with all types of insurance, its best to shop around to ensure you are
getting the best price, always compare the covers though before making your
decision,. A Keyfacts leaflet from each insurer will help you to decide.
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